“When a small business simply cannot afford the additional labor costs of a minimum wage increase they are forced to seek alternatives to stay solvent, such as eliminating jobs, reducing employee benefits, cutting hours and raising prices. Consumers may not be willing to pay more than the market allows,” Ehlbeck said in a statement.

“ … This proposal on minimum wage is misguided and will hurt the people who it is meant to help. New Jersey recently ranked at rock bottom in a national survey for the cost of doing business, and our policymakers should be devising ways to counter that,” she added.

Michele Siekerka, president and CEO of the New Jersey Business & Industry Association, agreed that any increase to the minimum wage would need to be phased in over several years, especially given the impact on small-business owners.

“Many of our members have already told us they will not be able to absorb a significant increase in the minimum wage without reducing staff, hours or benefits, raising prices or automating,” Siekerka said in a statement. “As such … the pathway must be a gradual phased-in one affording our job creators predictability and the ability to keep up with the continuing rising costs of running their business.”

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Comments

Michael CostiganSeptember 12, 2018 8:51 pm

Although well meaning, the increase even if phased in over a few years will have far reaching adverse results in these private duty home care industry. Businesses will be forced to pass on the additional costs to those individuals most at risk financially- our Seniors.

LeeSeptember 8, 2018 9:02 am

Small business company with strong benefits and pay rate above current minimum. Competes against companies outside NJ. End product entirely price sensitive, with labor the second largest cost component. NJ law will force layoffs and termination of long term valued employees. Customers will switch to out of state vendors unless Company cuts cost. Labor suffers. Yet looks good on paper. Any Politician stating either "right thing to do" or "investment", should use correct phrasing of " buying votes" as JK so notes.

pat ConwaySeptember 11, 2018 11:29 am

Not the correct first step.Murphy doesn't understand that will drive more small businesses to leave the state.Create a positive environment for business to open and flourish those businesses will need employees.

NY State has done it up state and the tech firms are paying good salaries.

tiaSeptember 11, 2018 12:30 pm

This is ridiculous. There's better ways to support people than putting the burden on the small businesses and driving them out. Not to mention all of the long-term negative consequences.

I am college aged and I was the only one of my friends to get a summer job this year. Businesses aren't hiring enough workers because of labor costs. Want to know a consequence of raising the minimum range for services? An even faster transition to automation. An increase in wages for the small amount of people who will still have their jobs does not outweigh the negative consequence of losing future permanent jobs to kiosks and self-service. Not to mention a whole younger population that is exiting high school never knowing the experience of having a job.

Mike V.September 6, 2018 5:19 pm

Not a supporter. The minimum wage in Pennsylvania today is $7.25 (the Fed minimum wage).

jkSeptember 6, 2018 3:22 pm

Well if you don't tax all of the GOOD employers out of the state you would have good paying jobs. I would say a job at starbucks or mc donalds is a GOOD job.What are these guys thinking other then trying to buy votes.